Final answer:
The statement confusing an asset with owner's equity is false. Assets are what a business owns for future benefits, while owner's equity is the residual interest in the assets of the business after subtracting liabilities, like the equity in a house after accounting for any outstanding mortgage.
Step-by-step explanation:
The statement 'Any item a business owns that will provide future benefits is called owner's equity' is False. An item a business owns which will provide future benefits is known as an asset. Owner's equity, on the other hand, refers to the owner's residual interest in the assets of the business after deducting liabilities. In other words, it is what remains from the company's assets once all debts have been paid.
An example that illustrates this concept is when it comes to owning a house. If the house's market value is $250,000 and the outstanding loan on the house is $100,000, then the owner's equity in the house would be $150,000. This example showcases how owner's equity is calculated and its distinction from the concept of a business asset.
Another way to understand this is by considering physical items that one may buy and sell, such as houses, land, art, and collectibles. These items are considered assets that can appreciate in value over time, providing future economic benefits to their owners.